|Re: Non-profit entities||<– Date –> <– Thread –>|
|From: Tiffany Lee Brown (magdalen23gmail.com)|
|Date: Thu, 13 Oct 2016 09:21:03 -0700 (PDT)|
I run a small nonprofit, and I do not have the cohousing experience. However I thought a little feedback from me might be helpful anyway. One of the best ways to approach the question, "Should we start a nonprofit?" is to try it out first by finding a fiscal sponsor. fiscal sponsorship involves an existing 501(c)(3) agreeing to act as your fiscal sponsor, generally taking about 10% off the top of any revenue you generate through them. Your goals should roughly align with their mission statement, but you are not considered part of their programming. The fiscal sponsor can issue donation receipts to your donors, to be written off on their taxes in many cases, and takes care of the higher level bookkeeping and administrative tasks and costs associated with running a 501(c)(3). In some ways these expenses and activities don't seem like a whole lot, but when you are doing them, they can end up running your life. It can be nice to have someone else doing it for you. You would want to ask the fiscal sponsor whether they could except funds on your behalf from certain foundations and individuals you plan to target, in case they feel there is a conflict between their own interests and yours. After a year of working with the fiscal sponsor, you should have a much clearer idea of whether your group should go ahead and go through the slog of becoming a 501(c)(3) nonprofit. Also keep in mind that the board of directors must not profit in anyway from the activities of the organization. I am not a lawyer, but I would guess that your group would want to have goals such as helping the community at large, not making your cohousing space better in order to increase your own property values. I would be interested to hear what more experienced cohousers say about using a 501(c)(3) structure. T in Oregon Sent from the far shores of a distant land > On Oct 13, 2016, at 8:44 AM, Joel Plotkin <joel [at] sunyit.edu> wrote: > > > Hey Cohos, > > Hundredfold Farm Cohousing in Orrtanna PA is considering formation of a > 501(c)3 non-profit arm for the purpose of sponsoring events and receiving > grants from foundations. Have any other communities done this? Problems? > Successes? How did you use the non-profit? What were some of your mission > goals? > > Respond on or off line... > > Joel Plotkin > Hundredfold Farm Cohousing > Orrtanna PA > _________________________________________________________________ > Cohousing-L mailing list -- Unsubscribe, archives and other info at: > http://www.cohousing.org/cohousing-L/ > >
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